Point of Title Transfer

Point of Title Transfer greatly affects specific taxability by impacting which authorities and which type of tax are calculated for each unique transaction. You can specify the Point of Title Transfer in several ways:

  • Submit a Point of Title Transfer of (D)estination, (O)rigin, or (I)n Transit using the input XML element <POINT_OF_TITLE_TRANSFER> at the Invoice or Line level.
  • Submit an Incoterms code in the input XML element <DELIVERY_TERMS> at the Invoice or Line level. Incoterms, short for International Commercial Terms, are used to specify an exact point of title transfer. Thirteen codes are currently implemented by the International Chamber of Commerce as part of ICC 2000 and included in ONESOURCE Indirect Tax Determination.
  • Depend on fallback logic as defined below if neither value is passed in.
  • Override fallback logic by setting up overrides or configuring and mapping new codes on the Delivery Terms page.

You can test both Delivery Terms and Point of Title Transfer on the Workbench.

The following Incoterms values can be submitted in the <DELIVERY_TERMS> field:
  • Carriage and Insurance Paid To (at named place of destination – Code CIP)
  • Carriage Paid To (at named place of destination – Code CPT)
  • Cost and Freight (at named port of destination – Code CFR)
  • Cost, Insurance and Freight (at named port of destination – Code CIF)
  • Delivered At Frontier (at named place – Code DAF)
  • Delivered Ex Quay (at named port of destination – Code DEQ)
  • Delivered Ex Ship (at named port of destination – Code DES)
  • Delivered Duty Paid (at named place of destination – Code DDP)
  • Delivered Duty Unpaid (at named place of destination – Code DDU)
  • Ex Works (at named place – Code EXW)
  • Free Alongside Ship (at named port of shipment – Code FAS)
  • Free Carrier (at named place – Code FCA)
  • Free On Board (at named port of shipment – Code FOB)

Calculation Notes

  • Delivery Terms, if specified for a transaction, always override a specified Point of Title Transfer.
  • If no Point of Title Transfer is indicated in a transaction, ONESOURCE Indirect Tax Determination applies a default of I (In Transit).
  • Incoterms have no effect on Brazilian calculations in ONESOURCE Indirect Tax Determination.